Japan's Inpex Corp. said on April 4 it has submitted a revised development plan to Indonesian government authorities for the Abadi LNG project incorporating a carbon capture and storage (CCS) component.
Japan's biggest oil and natural gas explorer submitted the revised plan of development on behalf of its joint venture with Shell after amending it to include plans to neutralize all CO2 emitted from natural gas production at the Abadi gas field through CCS.
Indonesia upstream oil and gas regulator SKK Migas is reviewing the revision to the development plan, chairman Dwi Soetjipto said in a text message.
Inpex expects to sequentially resume activities associated with the project, including various on-site activities, with an aim to reach a final investment decision in the latter half of the 2020s and commence production in the early 2030s.
Abadi will be Inpex's second self-operated, large-scale natural gas development project after the Ichthys LNG project in Australia.
The Indonesian project's annual LNG production volume is expected to reach 9.5 million tonnes at its peak, equivalent to more than 10% of Japan's annual LNG imports, according to Inpex.
Indonesia has long sought an investor to take over Shell's 35% stake in what is also known as the Masela gas project after the company announced its intention to withdraw. Inpex leads the project with a 65% stake.
The Indonesian government hopes discussions with state energy company Pertamina over its acquisition of Shell's stake in the Abadi project will be finalized in the first half of this year, a senior energy official said in March.
Dwi said Pertamina is "currently in negotiation" to join the project.
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